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Finisar back in black as revenue hits new high

Fiber-optic component and subsystem supplier Finisar registers its first profitable quarter in years.

For the first time since the telecom crash torpedoed the market for fiber-optic components, Finisar has posted a quarterly net profit.

The Sunnyvale, CA, company registered a record revenue of $93.5 million, up 8% sequentially and 28% from the equivalent period one year ago.

That translated into an operating profit of $1.5 million as measured under standard accounting procedures. The bottom line was further bolstered to $8.3 million after the sale of a minority investment had been accounted for.

"We are proud of the progress we have made," said Finisar CEO Jerry Rawls, who had predicted that this latest quarter would mark the company's return to profitability (see related story).

Reflecting on what has been an extended period of loss-making operations for the vertically-integrated firm, Rawls added that improved margins through manufacturing efficiency had been a key element of what he described as the "march to profitability".

That effort can be seen in the steady improvement to Finisar's gross margin figures, which have risen from 22.8% to 30.2% over the past year.

The return to profitability has also bolstered Finisar's liquidity, with the company now holding cash assets of $54 million.

As well as a strengthening optical networking market, Finisar's revenues have been helped by a broadening of the types of applications in which its components are used over the past year. New applications for its VCSELs include optical mice, while Finisar is also keen to penetrate the growing market for automotive optical networks.

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